crude oil Rising channel breakdown

Last updated May 3, 2019

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NYMEX crude oil broke the lower end of the rising channel and the low swing of 63.00, thereby negating the higher top and higher bottom formation. On the way up, the swing high of 66.60 will act as a crucial resistance level in the near term. Crude oil can drift lower towards the lower Bollinger band and 40DEMA of 61.50 and subsequently towards 57.30, i.e. 38.2% retracement level of its entire rise from 42.36 to 66.60. Any minor degree bounce shall be considered as a selling opportunity as long as it is trading below its swing high of 66.60. The daily momentum indicator is in bearish mode.